The company’s principle is: “Do what’s right for users.” “We’ve never set goals at Zerodha — be it user growth, revenues, or profits. The idea has been to get up every day, improve, & do what’s right for users, knowing that we’ll get to wherever we have to get to. The journey is a lot more fun this way,” Nithin Kamath tweeted.
“In any case, the range of outcomes in business is mostly driven by luck and being at the right place at the right time. Sharing so that people know that there are multiple ways to build a decently large business,” he added. https: //twitter.com/Nithin0dha/status/1608360698987577346?s=20&t=R-EZjSMWp84We43AZ1IYtA
However, earlier in his blog, Nithin Kamath said Zerodha’s customers, revenue and profits have grown 5X since March.
Kamath’s blog stated that certain factors have fueled their growth. “One is the phenomenal bull market in India. Developments such as eKYC, online digital signatures, and UPI turned the largely offline industry into a truly online, paperless one, enabling mass participation. And , for us specifically, adoption via word-of-mouth from our customers,” he said.
Kamath believes that their higher gross margins are a result of several conscious decisions, such as, “We don’t spend any money on marketing or advertising. We have a lean tech infrastructure built on top of high-quality Free and open-source software (FOSS) that they adopt and maintain in-house. We avoid external SaaS/vendor dependencies and lock-ins and self-host systems as much as possible. We have grown our teams slowly and organically, regardless of industry trends,” Kamath said .
Zerodha is the top broker in India with an 18.3% market share and 66 lakh client count. Its revenue, which it collects from the customers and passes on to the exchanges, stands at nearly 25%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)